HomeMy WebLinkAbout10/28/1991 - Regular MeetingCITY OF NEwpow BEACH
COLICIL MEMBERS
REGULAR COUNCIL MEETING
PLACEf Council Chambers
TIME: 700 CIO 0 P.M. P.
DATE: October 28, 1991
ROLL CRLL
Mayor Sansone announced that each year the
City Bicycle Trails Committee, which is
Composed of two volunteers from each of the
seven Councilmanic Districts has a Bike Tour
on the second Sunday in October to familiarize
the participants in the Bike Trail System,
promote the use of safety including bike
helmets, and bike maintenance procedures. The
event which starts at Newport Dunes and
circles the Bay, this year attracted over 400
participants of all ages, some of them in
tricycles. This event is made possible by
monetary and product contributions from
organizations in the City, and therefore,
Council Member Hedges, Council Liaison of the
Bicycle Trails Committee, and Bill Schonlau,
Chairman, recognized and presented each of the
following with the City's Certificate of
Appreciation: Bell Helmets, Der Winer-
.
schnitzel, Hoag Hospital, Hughes Market,
Newport Dunes, Sea Schwinn Bicycles and Vittel
Water Products.
Present
x
x
x
x
x
x
x
A. ROLL CALL.
Motion
x
B. Reading of Minutes of Meeting of
Ayes
x
x
x
x
x
x
October 14, 1991, was waived, approved
Abstained
x
as written„ and ordered filed.
Motion
x
C. - Reading in full of all ordinances and
All Ayes
resolutions under consideration was
waived, and the City Clerk was directed
to read by titles only.
D. HEARINGS:
•
None.
E. PUBLIC COMMENTS:
1. Debbie Irish, 210 Cypress, Balboa,
addressed the Council in support of not
banning bicycles and skates from the
Ocean Front Boardwalk, citing that the
Boardwalk :is used by children going to
and from the adjacent Newport Elementary
School as a safe route, and presented
approximately 207 letters for the
record.
Mayor Sansone advised Ms. Irish that the
Council referred the issue to the Ocean
Front Walk Ad Hoc Committee, who will
make recommendations to the City Council
as to what action should be taken.
2. Dan and Jan Rabun, 3130 Corte Hermosa,
addressed the Council, stating that they
came before the City Council
approximately one year ago because their
home is too near Bonita Creek Park and
the type of recreational activity,
especially from the cheering and
whistles associated with the football
games is unbearable. He added that
several other homeowners had presented
complaints„ and after a review with the
•
Parks, Beaches and Recreation
Commission, the noise from the whistles
Volume 45 - Page 308
MINUTES;
Pr
117
•
Motion
All Ayes
•
is
x
If
CITY OF NEWPORT BEACH
MINUTES
October 28, 1991
has still not been resolved. Mr. and
Mrs. Rabun invited the Council to come
down to their home on Saturday, November
2, at 1:00 p.m., and spend about 15 -25
minutes to experience with them the loud
and constant whistle noise coming from
the football activity behind their home.
F. CONSENT CALENDAR:
The following actions were taken, except for
those items removeds
1. ORDINANCES FOR INTRODUCTION:
Pass to second reading on November 12, 1991 -
I 119'
(a) Proposed ORDINANCE NO. 91 -39,
Ord 91 -39
being,
Noise/
PENALTIES TO COVER SURCHARGE
Zoning
AN ORDINANCE OF THE CITY
(94)
COUNCIL OF THE CITY OF
(40)
NEWPORT BEACH AMENDING
TITLE 15 OF THE NEWPORT
BEACH MUNICIPAL CODE SO AS
CA Workers
TO REVISE NOISE LEVEL
Comp Sys
STANDARDS FOR MECHANICAL
Res 91 -104
EQUIPMENT. [Report from
(66)
the Planning Department]
(b) Proposed ORDINANCE NO. 91 -40,
Ord 91 -40
being,
Marine/
Charter
AN ORDINANCE OF THE CITY
Permit
COUNCIL OF THE CITY OF
(27)
NEWPORT BEACH AMENDING
CHAPTER 5.18 REGARDING
MARINE CHARTER PERMIT.
[Report from the Revenue
Manager/ Finance
Department]
Schedule for public hearing on November 12,
1991 -
(c) Proposed ORDINANCE NO. 91 -41,
being,
AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING
TITLE 20 OF THE NEWPORT
BEACH MUNICIPAL CODE SO AS
TO REVISE NOISE LEVEL
STANDARDS FOR MECHANICAL
EQUIPMENT IN RESIDENTIAL
ZONING DISTRICTS. [Refer
to report w /agenda item F-
l(a)]
12. RESOLUTIONS FOR ADOPTION:
Ord 91 -41
Noise/
Zoning
(94)
(a) Resolution No. 91 -103 increasing
Muni Pkg
MUNICIPAL PARKING VIOLATION
Penalties/
PENALTIES TO COVER SURCHARGE
Increase
PAYABLE TO THE COUNTY OF ORANGE
Res 91 -103
required by State Trial Court
(40)
Funding Legislation. [Report from
Assistant City Attorney]
(b) Resolution No. 91 -104 calling for
CA Workers
reform of CALIFORNIA'S WORKERS
Comp Sys
COMPENSATION SYSTEM. (Memorandum
Res 91 -104
from the Personnel Director]
(66)
Volume 45 - Page 309
CITY OF NEWPORT BEACH
kX XIN e October 28, 1991
MINUTES
3. CONTRACTS/AGREEMENTS:
(a) Authorize the Mayor and City Clerk
Irvine Av/
to execute a Cooperative Agreement
Mariners
with the City of Costa Mesa for
School/
the INSTALLATION OF SCHOOL WARNING
Beacons
BEACONS on Irvine Avenue near
•
Mariners School. [Report from
C -2885
Public Works/Traffic Engineering]
(38)
(b) Authorize the Mayor and City Clerk
Inter -Cty
to execute an amendment to the
Trf Stdy
INTER -CITY TRAFFIC STUDY AGREEMENT
C -2771
(CONTRACT 2771) adding the Cities
(38)
of Santa Ana and Tustin as
participants, and revising the
total cost and cost shares.
[Report from Public Works /Traffic
Engineering]
-
4. COMMUNICATIONS - For referral as
indicated:
(a) To the City's Environmental
PD
Services Coordinator for response,
(70)
letter with follow -up information
from Lori Desmond concerning
NEIGHBORS' COMPLAINTS OF NOISE
FROM CORONA DEL MAR POST OFFICE
OPERATION DURING MIDDLE OF THE
NIGHT.
(b) To Ocean Front Walk City Council
Ocean Fr
Ad Hoc Committee for inclusion in
Wlk Ad Hoc
the records, letters from McFadden
Cmte
Square Improvement Association
(with attachment), Suzanne Rae
(24)
Lopez, James F. Hamlin, Cheryl
•
Nattress- Bloodworth, Damon Rose,
and S. J. Skahen concerning
proposed ban on the use of
bicycles, skateboards or
rollerskates on the OCEAN FRONT
BOARDWALK.
(c) To Public Works /Traffic
Trf /Bus
Engineering for response, letters
Shelters
from Newport Hills Community
(85)
Association, Mitchell and Anne
Brown, and M. C. Evans concerning
BUS SHELTER INSTALLATIONS WITH
ADVERTISING.
5. COMMUNICATIONS - For referral to the
City Clerk for inclusion in the records:
(a) Copy of letter from DENNIS B.
PICKENS complaining how his bonsai
tree was trimmed by Raymar
Electric Co., while doing work in
the vicinity of 817 VIA LIDO NORD.
6. CLAIMS FOR DAMAGES - For denial and
(36)
confirmation of the City Clerk's
referral to the claims adjuster:
(a) Ann 'Marie Jordan alleging damage
Jordan
to vehicle as a result of being
•
hit by Police automobile on
Pacific Coast Highway on September
21, 1991.
Volume 45 - Page 310
•
C I T'Y OF NEWPORT' BEACH
MINUTES
October 28, 1991
(b) Robert: M. Kennedy alleging
Kennedy
personal injuries as a result of
being struck down by hit and run
vehicle while crossing
intersection of Palm Street and
Ocean Front Walk on May 15, 1991.
(c) Alison Rosen for personal injuries
Rosen
and damage to her vehicle as a
result- of accident on Ford Road on
May 28, 1991, allegedly due to
PB &R
insufficient road warnings and
Shor
construction.
(62)
7. SUMMONS AND COMPLAINTS - For denial and
(36)
confirmation of the City Clerk's
referral to the claims adjuster:
(a) Harry & Rose Wehmueller regarding
Wehmull
personal injuries as a result of
accident at Pacific Coast Highway
and Orange Avenue, Orange County
Superior Court, Case No. 66 48 51.
Claim was denied by City Council
February 11, 1991.
8. REQUEST TO APPROVE /FILL PERSONNEL
(66)
VACANCIES: (Report from the City
Manager)
(a) Two Police Officers, Police
Department.
(b) One Groundsworker I, Parks
Division.
9. STAFF AND COMMISSION REPORTS -
For Council information and approval:
(a) Report from the Parks, Beaches and
PB &R
Recreation Director officially
Shor
designating the new mini park now
(62)
being constructed in the Newport
Shores Community as "NEWPORT
SHORES PARK."
(b) Removed from the Consent Calendar
(refer to agenda item G. 1 for
City Council action).
(c) Removed from the Consent Calendar
(refer to agenda item G. 2 for
City Council action).
For Council Information and filing:
(d) Report to the City Manager Plan
regarding ACTIONS TAKEN BY THE .(68)
PLANNING COMMISSION ON OCTOBER 10,
1991.
I10. PUBLIC HEARING SCHEDULING - November 12,
1991:
(a) Refer to agenda item F -1(c).
(b) Community Development Block Grant CDBG
(CDBG) 1992 -96 Comprehensive (87)
Housing Affordability Strategy.
[Report from the Planning
Department]
Volume 45 - Page 311
Pk
CITY OF NEWPORT BEACH
October 28, 1991
MINUTES
11. Removed from the Consent Calendar (refer
to agenda item G. 3 for City Council
action).
12. HARBOR PERNIIT APPLICATIONS - Uphold
Harbor Perm
staff's recommendation to approve the
Apli
•
following, subject to conditions of
(51)
approval listed in the staff report:
[Report from the Marine Department]
(a) Application No. 153 -213 -
153 -213
Jim Padden to revise the
oint residential pier and
loat bayward of 213 East
Bay Front, Balboa Island.
(b) Application No. 154 -119 -
154 -119
Jim Deane to revise the
residential pier bayward of
119 East Bay Front, Balboa
Island.
13. SPECIAL EVENTS APPLICATIONS - Uphold
Special
staff's recommendation to approve the
Events
following, subject to conditions listed
(27)
in the staff report: [Report from the
Revenue Manager
(a) Application No. 91 -366 -
91 -366
American Cancer Society for
temporary road closure /5K
Walk /Run /Skate at Back Bay
Drive on June 20, 1992,
from 8:00 a.m. - 12 Noon.
(b) Application No. 91 -382 -
1 -382
Newport Harbor High School
•
Public Fireworks Display
for Homecoming Half Time
Fireworks Show at Davidson
Field (Harbor High) on
November 8, 1991, from 8:30
- 9 :30 p.m.
14. 1991 -92 STREET MISCELLANEOUS
191 -92 St
RECONSTRUCTION AND RESURFACING PROGRAM
isc Rcnstr
(CONTRACT 2878) - Approve the plans and
srfcg
specifications; and authorize the City
-2878
Clerk to advertise for bids to be opened
(38)
at 11:00 a.m. on November 14, 1991.
[Report from the Public Works
Department]
15. Removed from the Consent Calendar (refer
to agenda item G. 4 for City Council
action).
i
16. ORANGE COUNTY /HEALTH CARE AGENCY -
0/C Health
Authorize the City Manager to send
Care Agcy/
"sample letter" designating the Health
Solid Wst
Care Agency as the SOLID WASTE LOCAL
(44)
ENFORCEMENT AGENCY FOR NEWPORT BEACH.
[Attached]
17. BUDGET AMENDMENTS - For approval:
None.
G. ITEMS REMOVED FROM THE CONSENT CALENDAR:
1. Report from the General Services
GS
Director recommending DONATION OF
(44)
OBSOLETE CITY SURPLUS SAFETY ITEMS TO
THE CITY Of' ENSENADA.
Volume 45 - Page 312
Motion
All Ayes
•
Motion
All Ayes
•
•
f
x
CITY OF NEWPORT' BEACH
October 28, 1991
Following discussion, Council Member
Plummer made the motion to defer action
on this matter to the meeting of
November 12, 1991, until she has
contacted the Sister City Cabo San Lucas
Association Liaison to see if any of the
items in the subject report can be
utilized by them.
Memorandum from the City Manager
recommending; Council Policy adoptions,
deletions or amendments to the CITY
COUNCIL POLICY MANUAL, and copy of
memorandum from the Board of Library
Trustees concerning COLLECTION
DEVELOPMENT POLICY 0 -6 of the Newport
Beach Public Library.
The foregoing was approved, following
discussion concerning amendments to
Council Policy 0 -1, whereby Council
Member Hart made a motion to amend
"Priorities of Use, 1.4.1, to read: 'All
official Library /City of Newport Beach
initiated and /or conducted
activities....'" regarding the new
public library, to provide a consistent
policy when. dealing with use of other
City buildings.
GENERAL PLAN AMENDMENT NO. 91 -3 - Report
from the Planning Department that the
City Council sustain the recommendations
of the Planning Commission to initiate
Amendments C, D, F, and G, and not to
initiate Amendments B and E; and direct
staff to proceed with the preparation of
any necessary environmental documents
and set for public hearing before the
Planning Commission as follows:
B. 3121 West Coast Hiahwav: A
request of The Towers Owners
Association to amend the Land Use
Element of the Newport Beach
General Plan to allow for the
enclosure of a spa area for a
legal, non - conforming mid -rise
condominium development on the bay
side of West Coast Highway in the
Mariner's Mile Specific Plan Area.
The proposal would require either
an increase to allowable Floor
Area Ratio in the Mariner's Mile
area or a redesignation,of the
property to Multi- Family
Residential with a special floor
area limit.
1600 Jamboree Road: A request of
Fred Fiedler and Associates on
behalf of Texaco Refining &
Marketing Inc. to amend the Land
Use Element of the Newport Beach
General Plan to increase the floor
area limit from 2,000 square feet
to 2,300 square feet to allow the
addition of a mini - market to an
existing gasoline service station.
Volume 45 - Page 313
MINUTES
Council
Policy
(69)
91 -3
0
•
Motion
•
CITY OF NEWPORT BEACH
COUNCIL MEMBERS
,7\NAO��0� \\ October 28, 1991
D. Pac Tel Site: A request of Resco
Development to amend the Land Use
Element of the Newport Beach
General Plan to redesignate the
site at the corner of Bison Avenue
and Camelback Street from Retail
and Service Commercial to Multi -
Family Residential and allow a
density of 30 dwelling units per
acre for a senior related
residential complex or 23 dwelling
units per acre for a residential
development with affordable
housing.
E. 2200 West Ocean Front: A request
of Francis Ursini to amend the
Land Use Element of the Newport
Beach General Plan to increase the
allowed Floor Area Ratio from
0.5/0.75 to 1.30 in the Mc Fadden
Square area in order to allow
remodeling and addition to an
existing, non - conforming retail
building in association with
seismic upgrades required by
Chapter 15.07 of the Newport Beach
Municipal Code.
F. Assisted Housing: A request of
the City of Newport Beach to amend
the Housing Element of the Newport
Beach General Plan to comply with
recent changes in state law which
require that the Housing Element
contain an analysis of existing
"assisted housing" developments
with affordability requirements
due to sunset within the next ten
years and program to preserve the
affordability of those units.
G. Circulation Element: A request of
the City of Newport Beach to
initiate an update of the
Circulation Element to incorporate
traffic projections, intersection
levels of service, and identified
improvements resulting from the
Traffic Model update to
incorporate OCTAM II projects.
Motion was made by Council Member Hedges
to sustain the recommendation of the
Planning Commission with respect to
items C, D, F and G, but also to
initiate Amendment E, such that the
Floor Area Ratio of the site to be
considered be no greater than 1.00,
inasmuch as the existing building
exceeds 1.00.
Following extensive discussion and
explanation by both staff and Council
regarding the property at 2200 West
Ocean Front, the Planning Director
advised that what is being requested
here is to change the designation on one
piece of property back up to 1.5 x the
buildable area of the lot for the
purpose of being able to finance
required earthquake strengthening of the
building. In reality, what would be
required is to change the permitted
Volume 45 - Page 314
MINUTES
GPA 91 -3
ROLL
Motion
Ayes
Noes
L
Motion
All Ayes
•
CITY OF NEWPORT BEACH
JxIxIxIxIxIx
x
October 28, 1991
Floor Area Ratios for similar type
developments in the McFadden Square
Area. Because this particular property
is in a block where every other property
is developed for residential use, and
because this appears to be a very viable
use of property on the oceanfront, the
Planning Department staff, in reviewing
this particular request and making a
recommendation to the Planning
Commission, suggested that instead of
going to 1.5 x buildable for commercial,
to take a look at changing the Land Use
designation on this one piece of
property to residential to make it
conform with most of the uses in the
block. But, the person who is requesting
the General Plan Amendment was not in
favor of that suggestion. If the City
Council votes to approve initiation of
the General Plan Amendment, then the
Planning Department will do a, required
study, taking a look at not only this
one piece of property, but the entire
McFadden Square area, and then make a
recommendation to the Planning
Commission for a hearing, with a
recommendation to the City Council.
Following discussion, substitute motion
was made by Mayor Sansone, which
carried, to uphold the recommendation of
the Planning Commission as presented in
the foregoing, to initiate Amendments C,
D, F, and G, and not to initiate
Amendments B and E.
4. Report from the Public Works Department
concerning APPEAL OF C. J. WILLIAMS with
a recommendation to deny request of Mr.
Williams to construct nine pay
telephones encroaching into the public
right -of -way of Balboa Boulevard, Main
Street and Bay Avenue; and direct staff
to prepare a proposed Council Policy
governing the location of pay telephones
in locations which impact public
property or public rights -of way.
Following discussion by Council Member
Hedges, motion was made to grant a
temporary encroachment permit allowing
the existing pay telephones only until
the City Council establishes a policy
governing pay telephones and their
locations, or any other source of
commercial use extending into the public
right -of -way, i.e., automatic teller
machines, or until the Balboa Specific
Plan is approved, whichever is later.
N. ORDINANCES FOR ADOPTION:
None.
Volume 45 - Page 315
MINUTES
GPA 91 -3
(65)
t/
C01Af ;i3;i:jsz7
MOAN
Ll
•
•
CITY OF NEWPORT BEACH
October 28, 1991
CONTINUED BUSINESS:
Recycled reports dated October 14, 1991
from the Deputy City Manager concerning
CATV FRANCHISES.
Council was advised that after the
agenda was printed, there was an
additional report from the Deputy City
Manager regarding CATV Rates.
Letters from the following in support of
granting the subject CATV franchisee:
MayBell Gargano, Sunny Phelps, Coast
Community College District Chancellor,
Alfred P. Fernandez.
Letter from Damon Rose (refer to page 2)
registering his complaint against the
escalating cable television prices on
the Peninsula.
Council was advised that after the
agenda was printed, additional
correspondence was received from COMCAST
in support of their request for a 20
year renewal; and from Newport Mesa
Unified School District in support of
expansion of cable television to
schools.
The City Manager advised that in January
of 1990 a report was brought to the City
Council indicating that the two CATV
Franchises in the City, ComCast and
Community Cablevision, would expire in
January of 1992, and it was suggested to
the City Council that the City review
its needs and the desires of the holders
of the franchises to determine whether
the franchises should /should not be
renewed and. under what conditions.
The City Manager offered the following
history regarding cable television in
the City of Newport Beach:
The 1.984 Cable Act took from the
City the right to regulate fees
and rates of the cable television
companies. It also effectively
stripped from the City the right
to deny an existing franchise.
The rules in the 1984 Act do not
say that.you cannot deny - -it says
that before you do deny you must
prepare a bill of particulars
(deficiencies), put the cable
company on notice, and give them
three years to rectify the
deficiencies. If they can do this
within three years, then the City
must renew the franchise
agreement. If, in the City's
judgment, at the end of three
years the conditions have not been
corrected, then the franchisee has
the right to go into court and
have the court - appointed referee
determine if the list of
particulars (deficiencies) have
not been met, and determine if the
reasons for findings of denial are
accurate and fair and are
justified. Then the cable company
Volume 45 - Page 316
MINUTES
CATV
Franchises
(42)
R - s.
•
E
CITY OF NEWPORT BEACH
October 28, 1991
has recourse through the courts, if
either party, is dissatisfied with the
referees. If you go through this
process (the three -years notice, and
possibly a year or two litigation, or
six months litigation) then the City or
the person that receives the new
franchise must purchase the old
franchise equipment as if it was a going
concern, and if all those conditions are
met, it would be extremely expensive for
the City or another company to come in
and purchase all of the equipment of the
current franchisees. Also, it would
take considerable time to determine what
the value was - -with the right of appeal
and the right of going into court - -if
the value was not fixed, and so since
the 1984 legislation, we know of no
jurisdiction that has come up for
renewal that has denied the renewal.
The City Manager advised that before
granting the renewals, staff suggested
to the Council that a list of items be
prepared that the City would like to see
done and concentrate primarily on the
quality of the picture, the quality of
the response time of complaints, etc.
A year ago staff came forward to the
Council with a list of some 39 items,
and among those items to be included in
the new franchise were such things as
the establishment of a 24 -hour toll -free
service telephone number, and a channel
box for certain channels; and fines for
continued poor service have been
increased from the present fine of $500
to $10,000. In the process, staff
checked off that which was desired of
the current: franchisees, and one of the
areas of concerns was the length of time
of the franchise. A year ago, the City
opted for a 10 -year franchise, and so
then the franchise companies were
notified of' the wish of the City to have
cable television broadcast live City
Council meetings, then the City would
consider adopting an ordinance awarding
the franchise. The 39 conditions were
reviewed by those that have the
franchises, and they started to
accomplish each of the 39 points. Some
time in this process within the last
four or five months, the franchise
people came forward and said that they
preferred a 20 -year term. Staff, too,
is suggesting consideration of a 20 -year
term, but within that 20 -year term the
City receive something of value for it.
What was suggested was to increase the
number of channels up to 54 instead of
39, and from one cable company to
another, so they would add 14 or 15
additional channels. What this would
permit the cable companies to do then,
is have a separate educational channel,
and a channel for some religious
programs, as we have been getting
letters from people who have been
interested in that channel. This is a
benefit to the users of the City of
Newport Beach by having additional
Volume 45 - Page 317
UG�AI
•
•
•
CITY OF NEWPORT BEACH
October 28, 1991
channels that they can dedicate to the
Newport -Mesa School District, Orange
Coast College, and Coast Community
College. In addition, the cable
companies said that they will finance
the hardware to connect all of the
City's fire stations, and one of the
fire stations will have capability to
broadcast training films, messages from
the Fire Chief (the order of the day)
broadcast live to each of the
substations of the Fire Department, and
each of these substations would be wired
with tv. The cable companies said that
this is the value that they would give
for 20 vs. a 10 -year renewal. At the
last meeting several members of the
council were away on City business and
the Cable companies ,requested a
continuation to this evening, and
Community Cablevision also wanted
additional time to complete the survey
that they were taking. Staff has
suggested to the Council to consider the
20 -year franchise, provided that within
five years the cable companies provide
the hardware for the Fire Station
hookup, and the additional channel to
accommodate? educational and religious
programs.
At the request of the Council, the City
Manager advised that utilizing the
statistics of January 8, 1990, ComCast
basically covers everything in the City
with the exception of properties north
of PCH,,and east of Jamboree and passes
approximately 27,500 homes, servicing
approximately 16,000 customers; whereas
Community Cablevision passes
approximately 7,475 homes, and services
6,245 customers. Approximately 10,000-
12,000 structures do not have cable as
of January 8, 1990.
The City Manager, in answer to Council
inquiry, stated that because of the 1984
Cable Act, the City is pre - empted from
regulating the rates of the cable
companies. Most of the complaints the
City gets from customers are quality
oriented, and the second number of
complaints are regarding "exhorbitent"
fees. He added that the Legislators in
Washington probably get the same
complaints the City receives, and from
time to time legislation is introduced
to return to the Cities the power to
regulate cable television rates.
Don McNutt, President, Community
Cablevision Company, addressed the
Council advising that they agree with
the City staff's recommendation, which
was the result of a lot of hard work and
negotiations on both sides over the two
+ years. The franchise renewal as
proposed, which they believe is fair and
equitable, encourages long -term thinking
and solutions, and it provides a
powerful incentive for prompt action on
their part to renovate and reinvest
Volume 45 - Page 318
MINUTES
CATV
Franchises
COUNCIL MEMBERS
•
•
CITY OF wwpoR:P BEACH
October 28, 1991
in the system. They believe strongly
that a renovated system incorporating
high capacity, state of the art, high
fiber - optic: quality will provide many
benefits for all parties well into the
future. A longer term simply enables
them to justify a longer investment in
the system„ which in turn, allows them
to add new services and dedicate
additional channel capacity and
equipment to the City, the School
District and other public entities.
Some people have told them that there
are already enough channels, with 39
channels, and they don't need any more.
Other people tell them that they don't
have enough, that the cable company
needs to do more to be prepared for new
technologies including high definition
television, digital audio, computer -
based interactive services, and the list
goes on. The fact is, new services are
developed every year that appeals to a
variety of audiences, both small and
large. Community Cablevision wants to
continue to be responsive to their
customers, and that means long -term
planning, long -term investment, and to
them, that means thinking beyond the
next 10 years. Community Cablevision
would hope that the Council could see
the wisdom and encourage them to look to
the future and to provide the best
possible services for the citizens of
Newport Beach. Community Cablevision
Company has been a good company, serving
Newport Beach customers for more than 25
years, and they have worked closely with
the City to resolve a variety of cable -
related issues over the years, including
a subscriber- protection ordinance, the
undergrounding of cable equipment and
the inter - connection of the City's two
systems. As a general rule, they have
not generated complaints to the City
regarding their service, and in the rare
instances that they have, the City staff
will verify, they have reacted quickly
to resolve any and all problems.
Mr. McNutt added that Community
Cablevision has performed well, and met
or exceeded all requirements of their
existing franchise agreement. He stated
that they have worked hard to arrive at
a renewal ;proposal that they think is
fair and equitable to both the City and
their company, and it really allows both
the City and Community Cablevision to
look toward the future long -term
solutions and opportunities. They do
understand the concerns that many of the
Council have expressed regarding a 20-
year term. 20 years is a long time, but
they think it's justified. However, in
an effort to find some common ground,
they would be willing to consider a term
of 15 years, which is certainly more
consistent with other renewals that have
been issued recently in the County, and
if this suggestion would be more
acceptable to the Council, they would
certainly be agreeable.
Volume 45 - Page 319
MINUTES
ATV
Franchises
CITY OF NEWPORT BEACH
October 28, 1991
Volume 45 - Page 320
MINUTES
CA'PR
At this Mr. McNutt thanked the
,point,
Council fox! listening to his comments,
and said that he would be pleased to
answer any questions they may have.
Responding to Council inquiry, Mr.
McNutt stated that Community
Cablevision's initial agreement was for
15 years, and a 10 -year renewal in 1981.
He also added that their system has
been, for a period of years, connected
to the schools in their service area,
and there has been some service
provided. There has not been a
dedicated channel to the School District
by any means; there has been sufficient
air time available for programming in
-
the schools, but not the wiring of all
the buildings within the schools.
The City Manager offered that what the
schools want is something similar to
what they have in Costa Mesa, and that
is a dedicated channel and the ability
to broadcast an educational program to
_
anyone in the Newport -Mesa Unified
School District building. Costa Mesa
does have a broadcasting facility, so he
doesn't think that needs to be
duplicated in Newport Beach, as long as
the connection is made in each of the
Newport -Mesa School District Campuses.
In answer to further inquiry of the
council, Mr. McNutt offered the
following information. The discussions
•
that Community Cablevision has had with
the School District in trying to
understand exactly what they have in
mind is still being assessed and they
don't have any cost estimates at this
point, although he does feel that it
would be a doable project, based on what
they have seen. Regarding the five -year
time frame, the additional channel
capacity renovation system will be
completed in the first five years of the
franchise agreement, and they would
certainly be willing to work with the
school districts and identify what needs
to happen and come up with that plan.
Although it might not take five years,
as based on the feedback that they have
from their technical people, they could
physically do it, probably in six
months.
In response to Mayor Pro Tem Turner's
inquiry and further clarification to
Council Member Watt regarding the School
District hookup, Mr. McNutt stated that,
yes, if the Council would go for 15
years, that this service could be
provided within two years. Mr. McNutt
stated that he does recall when Mr.
DeBoom came to see them that they went
to take a look at the property and
expressed a. willingness to evaluate what
needed to be done and come back with a
recommendation as to how they could do
something to provide the type of
services they were looking for in the
schools.
Volume 45 - Page 320
MINUTES
CA'PR
COUNCIL PE ME
M:i _
•
•
CITY OF NEWPORT BEACH
October 28, 1991
In response to Council Member Hart's
inquiry, that if the City Council
preferred a 10 -year extension on the
franchise how long would it take
community cablevision to put in the
educational cable to the schools, Mr.
McNutt stated, again, there is the
question of the additional investment
for the company. They would have to
make a consideration as to what costs
were involved given a 10 -year term, as
opposed to .a 15 -year term, or a 20 -year
term. Their thinking of how to amortize
those kinds of coats would be different,
and technically they could certainly do
that type of thing within two years- -
they could do it sooner than that. What
they would have to do would be to
evaluate a 10 -year term, and the costs
involved in adding these services, and
there is no definite answer to that, we
would just have to consider their costs
and come back to the Council with those
figures.
Dave Barford, ComCast, addressed the
Council urging support for a 15- or 20-
year extension to include the additional
channel capacities, which are what
subscribers are looking for, the
additional Fire Station broadcasting
capabilities and the channel dedicated
specifically for that purpose, as well
as educational opportunities with more
channels that would come available. He
added, that if they can have a longer
term commitment this improves their
ability to get financing because it
makes it very difficult for a franchise
company to think beyond when they have
a two -year process of renegotiating a
franchise. He added that current
ComCast franchises that they have in
Orange County (Newport Beach, Seal
Beach, Santa Ana, Buena Park, Fullerton
and Placentia) are all 15 -year
franchises.
Chris Racine, 2521 Vista Drive, stating
that he is President of Oceana
Broadcasting Company with stations in
Hawaii and in various countries in the
South Pacific, addressed the Council.
He added that the cable companies don't
make money from the broadcaster, they
make money from Showtime, HBO, etc. He
responded that there is another issue
that is probably as important, and that
is the issue of 20 years. As the
technology of cable and television has
moved so rapidly over the last several
years, and is moving much more rapidly
now, in his opinion, to give a company
a 20 -year renewal would not be prudent.
He agreed that there is a lot of
legislation currently pending that would
affect the cable companies, and it puts
the subscriber in an unfair position, as
there really isn't another alternative.
He urged the City of Newport Beach take
Volume 45 - Page 321
MINUTES
COUNCIL MEMBERS
)aim
•
0
•
CITY OF NEWPORT BEACH
October 28, 1991
a more cautious approach toward making
such a long -term commitment, and to take
a "wait- and -see" position.
A. C. Moy McLaughlin, resident of Corona
del Mar, addressed the Council with his
understanding of the MMDS and DBS
competition, stating that Direct
Broadcast Satelite is very expensive
technology and it hasn't even gotten off
the ground yet, except in Europe. He
understands that the amount of people
that will use DBS is under 8,000 for the
entire country so far. MMDS (Multi-
channel Distribution System) microwave
technology, requires line of eight
broadcasting, and that is not currently
available to most of the residents in
Corona del Mar if you live in the hills
or down by the beach, as there is no
line of sight, and for this reason they
can't receive some of the UHF and VHF
Stations on their antennas. He urged
that the "wait- and -see" attitude is much
more warranted here, and agrees that a
10 -year or less renewal be granted. He
suggested 'that the subscriber's billing
statements, contain more advance
noticing of future franchise renewals.
Karen Evart:s, 426 Piazza Lido, addressed
the Council, stating that she has had
nice experiences with ComCast, and their
very professional crews while she was
involved with a candidates forum and the
League of women Voters. She added that
she got through within a minute when she
called ComCast today, with instant
service, as compared. with the service
two years ago. She stated that she
called Ensign School this morning on a
bike safety program, and was told that
at that very moment Ensign School was
receiving its cable drop link with
television, and would have appreciated
having cable capability while she was
participating in putting on the
candidates forum at Harbor High. She
understands that each Newport Beach
School is receiving one cable link to
its multi - purpose room. She requested
that the City investigate interlinking
the classrooms in Newport Beach, as this
has been available in the Irvine School
District for the past 13 years.
Cal McLaughlin, 544 Seaward Road,
addressed the Council, stating that he
currently is involved in advanced
computing and advanced imaginalysis, and
believes that there is a strong
revolution going on in imaginalysis,
which will come out in the public sector
as high definition television. In order
to get the enormous band widths that are
required for this sort of excellent
television reception this requires a
fiber optic, network across the U. S. It
will either be the cable operators who
will offer this service, or the
Volume 45 - Page 322
MINUTES
CATQ
Franchises
CODICIL MEMBERS
CITY OF NEWPORT BEACH
1991
Volume 45 - Page 323
MINUTES
CATV
Franchises
telephone companies, and the cable
companies essentially do have the
television monopoly. He favors a 5-
year renewal, and feels that what the
cable companies are offering its
customers is really not very much.
Doug Montandon, 20 -year resident and
Marketing Manager for ComCast for the
past seven }rears, addressed the Council,
Stating that he is now Marketing Manager
in Riverside and he wanted to set the
record straight as far as competition is
concerned. He stated that their
operation is not small, they have 47,000
subscribers, and MMDS launched their
-
system this; year, and they have 16,500
subscribers. He added that you don't
necessarily need line of sight, as
technology is catching up to get around
this. MMDS currently has a 22- channel
system that they are selling for $13.95
per month, of which there are no council
meetings or fire stations, or school
channels, or any other type of
programming, as they are selling basic
two - premium channels and one "pay -for-
view" channel. He advised that they
_
have put $500,000 into fiber optics in
the City of Riverside this past year,
and that this type of financial
commitment would not have been available
if their long -term commitment (20 years)
would not have been given. He stated
that if the channel capacity is not
there, the subscribers are unhappy; as
•
is now, they have over 54 channels with
the basic service in Riverside.
Jim DeBoom, 1723 Bayport Way, addressed
the Council on behalf of the Newport-
.
Mesa Unified School District where he
serves as a Member of the Board of
Trustees, stating that he is happy to
report the cable companies have
completed the drop of cable television
to all the schools in the District, the
most recent being at Ensign Middle
School. The cable links are dropped at
the library or the multipurpose room,
and from that point on, the classrooms
are not linked. They have received a
commitment from both cable companies
that if they do receive the opportunity
ito expand their number of channels that
they are able to offer, that the schools
will have access to the educational
channels. There are still several needs
that they have, and those depend on the
money that is needed to develop a cross-
connect between the three cable
companies that serve the Newport -Mesa
Unified School District so that they can
-
broadcast from their bare facility to
any of the schools within the School
.District within those cities. They are
currently able to broadcast to the
•
schools in Costa Mesa, but they cannot
broadcast to the schools in Newport
Beach. He added that the estimated cost
of the cross- connect is between $90,000
_
and $100,000, and the School District
can't afford to shoulder the cost by
'.
themselves. Once they get the cable
Volume 45 - Page 323
MINUTES
CATV
Franchises
0 -.a is a
1k; N�
•
Motion
•
•
Xf
X
CITY OF NEWPORT BEACH
October 28, 1991
drop to the schools, they need to have
classrooms, libraries, auditoriums,
gymnasiums and other facilities wired so
that they can take the signal that comes
across cable to the classroom. An
estimate of $20,000 and $25,000 would be
needed for the Middle School, and the
high schools would require $25,000 to
$30,000 capital investment. If you look
at the $90,000 plus the ten schools that
need to be wired, they are looking at a
$350,000 investment that needs to be
made by somebody so that they can do in
Newport Beach what they are able to do
in Costa Mesa. Mr. DeBOOM would endorse
the 15 -year renewal proposal that Mr.
McNutt made because it will make a
difference to the educational quality
that the District can offer in the
classroom.
At this point, Mayor Sansone announced
that the public testimony was closed,
hearing no one else wanting to address
the Council..
Council Member Cox stated that so long_
as the City is getting the upgrades, the
high definition television and some of
the interl:inks, he made the motion to
issue a renewal of the cable companies
agreements, but that they be for a 15-
year period of time, instead of a 20-
year period of time.
Mayor Pro Tem Turner asked if Council
Member Cox was including in that motion
the possibility of accellerating the
date from five years to about two years
to install the 54 channels, and provide
the dedicated lines to the schools and
Fire Department as well, and high
definition television.
Council Member Cox stated that he would
take each item one at a time:
"1. High definition television -
We do need the interlink
right now between Newport,
ComCast and Community for
the City Council meetings,
and I think that this is a
subject that is doable
quickly, so that we can
interlink between Costa
Mesa and Newport as far as
the school system is
concerned to connect all
the schools, and I support
that and I think that can
be done as fast as
possible.... in six months
if they get that worked
out.
Volume 45 - Page 324
MINUTES
1 ,nom
CATV
Franchises
CITY OF NEWPORT BEACH
COUNCIL MEP®ERS
October 28, 1991
ia:L CRLL
"2. Has to do with a dedicated
channel.... The other option
to go to 54 channels is
that you now make available
new channels of which you
could make one of those
dedicated, and that's an
•
issue it seems as to how
fast they could get up to
54 channels, and whether
that's two years .... I think
that's what they indicated
to us .... they could maybe
get two more channels out
of the existing system or
dedicate the existing
system ... they Be 54
-
channels in five ye,re.
"3. .... Mr -. DeBoom ....having
to do with the $400,000
investment or whatever, to
connect the system beyond a
central point in the school
and connect it to other
rooms. I think that goes
-
too far .... It's a nice
gesture, but the money's
got to come from someplace
and the odds it's going to
come from the rate people
-
are paying... and we don't
have control over that....
I don't support going that
far. As far as the Fire
Station is concerned, I
don't think that matters
cost -wise a whole lot. I
•
happen to think that is a
frivilous freebee, for the
Fire Station that the rest
of the City doesn't get,
but if the rest of the
Council supports that, so
be it.
"4. The last question we had
was high definition
television, which has to do
with the fiber optic
installation and equipment
associated with that..."
The City Manager, at the request of
Council Member Cox, advised that high
definition television was discussed a
year or so ago after staff drafted the
basic ordinance, and the Council placed
in there the following paragraph - - "the
Council is authorized to amend this
chapter to adopt additional rules and
regulations governing the operations of
CATV Systems in the City, such rules and
regulations shall apply to and shall
govern the operations of the Grantee of
any franchise granted pursuant to this
chapter."
•
Volume 45 - Page 325
MINUTES
x$011
0
Motion
•
Motion
COUNCIL MEMBERS
x
Ayes I x I x
Noes
Ayes
4)
x
x.
x
CITY OF NF9YPORT BEACH
MINUTES
October 28, 1991
Volume 45 - Page 326
The City Manager commented that the
CATV
foregoing provision was put into the
Franchises
basic ordinance to permit the City to
adopt regulations taking into account
state of the art developments, so if the
franchise is awarded, it is tied into
the CATV ordinance.
Council Member Hedges commented on the
fact that the cable companies say they
are unable to disclose their financial
information, and therefore, he would
support a shorter franchise term, such
as a three- or five -year term.
Council Member Hart made a substitute
motion to uphold the items that were
discussed previously that the City wants
the cable companies to accomplish, but
to grant a 10 -pear extension.
As a point of clarification, Mayor
Sansone qui.ered Mr. Racine about high
definition television, wherein, Mr.
Racine addressed the Council, stating
that high definition television will not
be compatible with today's television.
Mayor Sansone commented that what they
approve here, will require a fee
increase because whatever the cable
companies have to do to upgrade their
systems is going to require an increase
in fees.
Council Member Hart stated she felt it
would be appropriate to include in the
Council's agenda packet on November 12,
an estimate of what the 1991 -92 fees
will be.
The City Manager asked, as a point of
clarification, if the ordinance is to
include the fire station, 54 channels,
and the dedicated educational channel in
connection with each school; wherein,
Mayor Sansone stated that Council Member
Hart is just adding the basic hookup to
the school, and not the $400,000 system.
Council Member Hedges made a second
substitute motion to grant a five -year
franchise with review in two years.
The City Attorney advised that the basic
CATV ordinance would have to be revised,
as according to its provisions the
franchise shall be no shorter than 10
years, nor longer than 25 years. This
'
would require staff to bring the revised
CATV ordinance back to the Council.
The second substitute motion made by
X
Council Member Hedges was voted on and
FAILED.
x
Council Member Hart's substitute motion
was voted on, and carried to:
(a) Adopt Resolution No. 91-
Res 91 -105
105, declaring the
intention of the City
Council to adopt . ordinances
amending and extending the
term of the franchises
Volume 45 - Page 326
CMKIL MEMBERS
•
•
w
CITY OF NEWPORT.' BEACH
MINUTES
October 28, 1991
INDEX
granted to Community
CATV
Cablevision and ComCast
Franchises
Cablevision;
(b)
Introduce, pass to 2nd
reading on November 12,
1991:
Proposed ORDINANCE No. 91-
Ord 91 -42
42, being,
Community
AN ORDINANCE OF THE CITY
Cablevision
COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING A
NON - EXCLUSIVE FRANCHISE
WITH COMMUNITY CABLEVISION
COMPANY TO CONSTRUCT,
MAINTAIN AND OPERATE A
COMMUNITY ANTENNA TELEVISI
ON SYSTEM WITHIN THE CITY;
and
(c)
Introduce, pass to 2nd
reading on November 12,
1991:
Proposed ORDINANCE No. 91-
Ord 91 -43
43, being,
ComCast
AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING A
NON - EXCLUSIVE FRANCHISE
WITH COMCAST CASLEVISION To
CONSTRUCT, MAINTAIN AND
OPERATE A COMMUNITY ANTENNA
TELEVISION SYSTEM WITHIN
THE CITY.
J. CURRENT BUSSNESSt
None.
Meeting adjourned,
at 9s55 p.m.
x x x x x x
x x x x x x x
The agenda for this meeting was posted
on October 24, at 8:30 a.m., on the City
Hall Bulletin Board located outside of
the City of Newport Beach Administration
Building.
K!91VKW M_
` Mayor '
Volume 45 - Page 327